Falcon speech from ECB Chief Economist Lane

Philip Lane, Chief Economist of the European Central Bank (ECB), made evaluations about the monetary policy followed by the ECB.

“If the baseline scenario we developed prior to the banking stress continues, further increases in May would be appropriate.” Lane underlined during the May meeting that they should stick to the data while evaluating whether this scenario is still valid.

“The European economy is performing relatively well and is expected to grow by about 1 percent this year,” Lane said, noting that the Eurozone banking system is “in good shape”, although the ECB is “always on the alert”. said.

ECB officials agree that the underlying price pressures will determine the rate decision. With the continuing concerns in the banking sector, ECB officials are also signaling that the most aggressive monetary tightening cycle has come to an end in recent times.

The ECB raised the interest rate by 50 basis points at its last meeting.

In its last meeting held on March 16, the European Central Bank increased interest rates by 50 basis points in line with market expectations. With this decision, the bank’s main refinancing interest is 3.50 percent; It increased its marginal funding facility to 3.75% and overnight deposit interest to 3%.

While there was a prediction in the text of the resolution that inflation would remain at a very high level for a long time, it was also stated that uncertainty required a data-driven approach.